Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price Up 2.3% - Time to Buy?

Key Points

• Shares rose about 2.3% on Monday to roughly $89.53 (intraday high $91.80) while trading volume was down ~46% versus the average, suggesting muted participation in the move.
• Kratos beat the latest quarter with $0.18 EPS vs. $0.14 est. and revenue of $345.1M (+21.9% YoY), but carries a very high trailing P/E (~688.75), reflecting low current earnings relative to its market cap.
• Wall Street sentiment is a “Moderate Buy” with a consensus price target of $98.28 and wide analyst targets ranging roughly from $79 to $134 (majority of recent ratings are Buy).

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report)'s share price rose 2.3% during trading on Monday . The stock traded as high as $91.80 and last traded at $89.53. Approximately 2,419,494 shares traded hands during mid-day trading, a decline of 46% from the average daily volume of 4,473,529 shares. The stock had previously closed at $87.53.

Wall Street Analysts Forecast Growth

KTOS has been the subject of a number of recent analyst reports. BNP Paribas Exane set a $80.00 price objective on Kratos Defense & Security Solutions in a research report on Tuesday, November 18th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Kratos Defense & Security Solutions in a research note on Thursday, January 22nd. Stifel Nicolaus lifted their price target on shares of Kratos Defense & Security Solutions from $112.00 to $134.00 and gave the company a "buy" rating in a research report on Tuesday, January 13th. Piper Sandler initiated coverage on shares of Kratos Defense & Security Solutions in a research note on Wednesday, January 21st. They issued a "neutral" rating and a $99.00 price target on the stock. Finally, UBS Group assumed coverage on shares of Kratos Defense & Security Solutions in a report on Wednesday, February 18th. They issued a "neutral" rating and a $79.00 price objective on the stock. One investment analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat.com, Kratos Defense & Security Solutions currently has a consensus rating of "Moderate Buy" and a consensus price target of $98.28.

Kratos Defense & Security Solutions Price Performance

The company has a current ratio of 4.06, a quick ratio of 3.46 and a debt-to-equity ratio of 0.05. The stock has a market cap of $16.72 billion, a PE ratio of 688.75 and a beta of 1.12. The company has a fifty day moving average of $100.19 and a 200-day moving average of $86.83.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last announced its earnings results on Monday, February 23rd. The aerospace company reported $0.18 EPS for the quarter, beating analysts' consensus estimates of $0.14 by $0.04. The company had revenue of $345.10 million during the quarter, compared to analysts' expectations of $327.51 million. Kratos Defense & Security Solutions had a return on equity of 3.34% and a net margin of 1.63%.Kratos Defense & Security Solutions's revenue for the quarter was up 21.9% on a year-over-year basis. During the same period last year, the business posted $0.13 EPS. Sell-side analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.31 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Thomas E. Iv Mills sold 8,523 shares of Kratos Defense & Security Solutions stock in a transaction that occurred on Wednesday, January 7th. The shares were sold at an average price of $92.98, for a total value of $792,468.54. Following the completion of the transaction, the insider owned 9,802 shares in the company, valued at approximately $911,389.96. The trade was a 46.51% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Stacey G. Rock sold 16,568 shares of the company's stock in a transaction that occurred on Monday, January 12th. The stock was sold at an average price of $116.74, for a total transaction of $1,934,148.32. Following the sale, the insider directly owned 26,487 shares in the company, valued at approximately $3,092,092.38. The trade was a 38.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 550,763 shares of company stock valued at $48,771,342. 2.37% of the stock is owned by company insiders.

Institutional Trading of Kratos Defense & Security Solutions

A number of large investors have recently modified their holdings of KTOS. Mcguire Capital Advisors Inc. acquired a new position in Kratos Defense & Security Solutions during the 4th quarter worth $25,000. Atlantic Union Bankshares Corp increased its holdings in Kratos Defense & Security Solutions by 7,600.0% during the 4th quarter. Atlantic Union Bankshares Corp now owns 385 shares of the aerospace company's stock worth $29,000 after purchasing an additional 380 shares during the period. TD Waterhouse Canada Inc. acquired a new stake in Kratos Defense & Security Solutions in the 2nd quarter valued at about $30,000. Rakuten Securities Inc. purchased a new position in shares of Kratos Defense & Security Solutions in the 2nd quarter valued at about $31,000. Finally, Bayforest Capital Ltd purchased a new position in shares of Kratos Defense & Security Solutions in the 3rd quarter valued at about $32,000. Hedge funds and other institutional investors own 75.92% of the company's stock.

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc NASDAQ: KTOS is a technology-driven company that specializes in national security and defense solutions for government and military customers. The firm’s core capabilities span unmanned systems, satellite communications, missile defense, cyber security, and directed-energy weapons. Through its integrated approach, Kratos delivers mission-critical products and services designed to enhance operational readiness and support force modernization initiatives.

In the unmanned systems arena, Kratos develops high-performance aerial platforms used as target drones, low-cost attritable aircraft and experimental stealth demonstrators.

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